Africa
Political
aspects
Many authoritarian regimes in Africa
Source:
http://a330.g.akamai.net/7/330/25828/20081021185552/graphics.eiu.com/PDF/Democracy%20Index%202008.pdf
Economic
aspects
GDP per capita
Sources
International Monetary Fund.
http://en.wikipedia.org/wiki/Image:GDP_nominal_per_capita_world_map_IMF_2007.PNG
Source
https://www.mckinseyquarterly.com/Economic_Studies/Productivity_Performance/Whats_driving_Africas_growth_2601
The continent’s 4 most advanced economies -
Egypt, Morocco, South Africa, and Tunisia - are
already broadly diversified.
Manufacturing and services together total 83% of
their combined GDP.
Domestic services, such as construction, banking,
telecom, and retailing, have accounted for more
than 70% of their growth since 2000.
Source
https://www.mckinseyquarterly.com/Economic_Studies/Productivity_Performance/Whats_driving_Africas_growth_2601
GDP in billions of USD in strongest African economies
Source
http://appfrica.net/blog/2009/11/13/infostate-of-africa/#utm_source=rss&utm_medium=rss&utm_campaign=infostate-of-africa
GDP per capita
The average gross national income per capita
across all 53 African nations in 2006 was about
$1,066 – more than $200 above India’s.
Source: Mahajan, Vijay: Africa Rising, p. 29.
40% of Africans (360 million people)
live on less than USD 1.25 per day.
Source
http://emagazine.credit-suisse.com/app/article/index.cfm?fuseaction=OpenArticle&aoid=263337&WT.mc_id=In%20Focus%20International%2007.07.2009-264099 =EN
Annual average GDP growth in %
Source: http://www.economist.com/displaystory.cfm?story_id=12376610
Share of Africa’s exports and imports in world trade
Source: http://www.weforum.org/pdf/AFCR09/AFCR09_full_report.pdf
From 1990 through 2008, Asia’s share of African
trade doubled, to 28%, while Western Europe’s
portion shrank, to 28%, from 51 percent.
Source
https://www.mckinseyquarterly.com/Economic_Studies/Productivity_Performance/Whats_driving_Africas_growth_2601
Monthly labor cost per worker
Source: http://www.weforum.org/pdf/AFCR09/AFCR09_full_report.pdf
Tax rates
Source: http://www.weforum.org/pdf/AFCR09/AFCR09_full_report.pdf
Sub-Saharan destination of exports in percent
Source
http://a330.g.akamai.net/7/330/25828/20070904125121/graphics.eiu.com/upload/Heading%20for%20the%20rocks.pdf, p. 28.
In 2009, the Chinese Ministry of Commerce reported
that about 1,000 Chinese enterprises do business in
Africa, spanning fields such as trade, transportation,
agriculture, and the processing of agricultural products.
Source
https://www.mckinseyquarterly.com/Public_Sector/Economic_Policy/Making_the_most_of_Chinese_aid_to_Africa_2609
Low wealth and low happiness in Africa
Source: http://pewglobal.org/reports/pdf/257.pdf
Sub-Saharan Africa’s hydrocarbon-resource
wealth will lead to economic development only if
governments manage wisely and honestly the
development of the sector and the revenues
that accrue.
Source: http://www.worldenergyoutlook.org/docs/weo2008/fact_sheets_08.pdf
Infrastructure
Road density in Africa
7 km. per 100 km2
Road density in Asia
21 km. per 100 km2
Source
http://emagazine.credit-suisse.com/app/article/index.cfm?fuseaction=OpenArticle&aoid=263327&WT.mc_id=In%20Focus%20International%2007.07.2009-264099 =EN
Although road transport makes up 90% of intra-urban
transport in Africa, only 19% of Africa's roads are
paved.
Source
http://emagazine.credit-suisse.com/app/article/index.cfm?fuseaction=OpenArticle&aoid=263327&WT.mc_id=In%20Focus%20International%2007.07.2009-264099 =EN
Since 2000, Africa’s annual private infrastructure
investments have tripled, averaging $19 billion from
2006 to 2008.
Source
https://www.mckinseyquarterly.com/Economic_Studies/Productivity_Performance/Whats_driving_Africas_growth_2601
It cost more to ship a ton of wheat from Mombasa
in Kenya to Kampala in neighboring Kenya than it
did to ship it from Mombasa to Chicago, USA
Source
Global Investor, Credit Suisse. October, 2009.
Resources
Resource World share Location
Chromium More than 80% Central and Southern Africa
Platinum More than 80% Central and Southern Africa
Cocoa More than 70%
Diamonds More than 60% Central and Southern Africa
Gold More than 40% Central and Southern Africa
Cobalt More than 40% Central and Southern Africa
Phosphate More than 30% North Africa
Bauxite More than 30% West Africa
Titanium More than 20%
Uranium More than 15% West, Central and Southern Africa.
Oil More than 10%
Sources
Credit Suisse Magazine ”bulletin”, May/June 2009.
http://emagazine.credit-suisse.com/app/article/index.cfm?fuseaction=OpenArticle&aoid=263337&WT.mc_id=In%20Focus%20International%2007.07.2009-264099 =EN
https://www.mckinseyquarterly.com/Economic_Studies/Productivity_Performance/Whats_driving_Africas_growth_2601
https://www.mckinseyquarterly.com/Economic_Studies/Productivity_Performance/Africas_path_to_growth_Sector_by_sector_2602
Agriculture
Africa’s share of the world’s
arable land: 25%.
agricultural output: 10%.
Source
https://www.mckinseyquarterly.com/Economic_Studies/Productivity_Performance/Africas_path_to_growth_Sector_by_sector_2602
Farms in Africa are small
Source
https://www.mckinseyquarterly.com/Economic_Studies/Productivity_Performance/Africas_path_to_growth_Sector_by_sector_2602
Little fertilizer is used
Africa on average uses just 12.4 kilograms of fertilizer
per hectare - against 96.2 kilograms in North America
and 71.5 kilograms in Europe.
On average, Africa uses only 13% of the amount of
average fertiliser used per hectare on a global level.
Sources:
http://viewswire.eiu.com/report_dl.asp?mode=fi&fi=1523246737.PDF&rf=0
http://emagazine.credit-
suisse.com/app/article/index.cfm?fuseaction=OpenArticle&aoid=263327&WT.mc_id=In%20Focus%20International%2007.07.2009-
264099 =EN
Few tractors are used
Africa has just 1 tractor for every 868 hectares
compared with the global average of 1 tractor
per 56 hectares.
Source
http://emagazine.credit-suisse.com/app/article/index.cfm?fuseaction=OpenArticle&aoid=263327&WT.mc_id=In%20Focus%20International%2007.07.2009-264099 =EN
Agriculture in Africa is higly concentrated
Agriculture is Africa’s largest economic sector,
representing 15% of the continent’s total GDP,
or more than $100 billion annually.
Agriculture is highly concentrated, with Egypt
and Nigeria alone accounting for one-third of
total agricultural output
Source
https://www.mckinseyquarterly.com/Economic_Studies/Productivity_Performance/Africas_path_to_growth_Sector_by_sector_2602
The cumulative effect of this underutilization
of Africa's large arable land resources is that
African agricultural yields are a staggering
66% below the global average.
Source
http://emagazine.credit-suisse.com/app/article/index.cfm?fuseaction=OpenArticle&aoid=263327&WT.mc_id=In%20Focus%20International%2007.07.2009-264099 =EN
Energy
Petroleum industry investments in exploration
and production activity in Africa 1990 - 2010:
US$ 70 billion
Source: http://knowledge.wharton.upenn.edu/article.cfm?articleid=1830
Africa will produce 13% of global oil
by 2015, up from 9% in 1998.
Source
https://www.mckinseyquarterly.com/Economic_Studies/Productivity_Performance/Africas_path_to_growth_Sector_by_sector_2602
Africa has the 3rd largest coal reserves in the world.
Source
Global Investor, Credit Suisse. October, 2009.
Africa has 33% of the world’s hydro resources.
Source
Global Investor, Credit Suisse. October, 2009.
Africa has plenty of wind and sunshine
to generate wind and solar power.
Source
Global Investor, Credit Suisse. October, 2009.
The World Bank estimates that the expansion of the
Inga hydro project on the Congo River could provide
enough electricity to power the whole continent.
Source
http://emagazine.credit-suisse.com/app/article/index.cfm?fuseaction=OpenArticle&aoid=263327&WT.mc_id=In%20Focus%20International%2007.07.2009-264099 =EN
Africa generates just 3% of the world’s electricity.
Source
Global Investor, Credit Suisse. October, 2009.
Financial industry
Largest banks in Africa
Standard Bank Group.
Absa Group, a part of Barclays.
Nedbank Group.
Investec.
FirstRand Banking Group.
Source: Mahajan, Vijay: Africa Rising, p. 47.
Other banks in Africa
The pan-African Ecobank Transnational
Has more than 11,000 employees in more than 750 branches
in 30 African countries.
Capitec Bank, South Africa
African Bank, South Africa
Guaranty Trust Bank, Nigeria
Source
https://www.mckinseyquarterly.com/Economic_Studies/Productivity_Performance/Africas_path_to_growth_Sector_by_sector_2602
Source: https://www.myc4.com/
The annual flow of foreign direct investment
into Africa increased from $9 billion in 2000
to $62 billion in 2008.
Source
https://www.mckinseyquarterly.com/Economic_Studies/Productivity_Performance/Whats_driving_Africas_growth_2601
Foreign Direct Investment (FDI) in Africa shot to
about $39 billion in 2006, double the level 2004.
Top destinations for foreign direct investment were
Egypt, Nigeria, Sudan, and Tunisia.
With more than $1 billion in capital under
management, Emerging Capital Partners (ECP) is
one of the largest private equity fund managers
targeting Africa.
Sources:
Mahajan, Vijay: Africa Rising, p. 38.
100 million people from Africa live in other
countries. They send USD 40 billion home
to their families each year.
Source:
Interview with Vijay Mahajan.
http://www.ideaconnection.com/articles/00130-Innovation-in-Africa.html?ref=nl072109
Retail industry
Largest retailer in Africa
Sources:
Mahajan, Vijay: Africa Rising, p. 80.
http://www.shoprite.co.za/
Coca-Cola is the largest single employer in
the private sector, employing something like
120,000 people.
Source:
Interview with Vijay Mahajan.
http://www.ideaconnection.com/articles/00130-Innovation-in-Africa.html?ref=nl072109
Telecommunications
Millions of mobile phone subscriptions
Source
https://www.mckinseyquarterly.com/Economic_Studies/Productivity_Performance/Africas_path_to_growth_Sector_by_sector_2602
Celtel
Started by Mo Ibrahim.
In 2005, Celtel was sold to MTC Kuwait for $3.4 billion,
making it one of Africa’s most successful commercial
ventures.
The company, now in more than 15 countries,
has invested in excess of $750 million in Africa.
Source: Mahajan, Vijay: Africa Rising, p. 21-22.
Source
http://appfrica.net/blog/2009/11/13/infostate-of-africa/#utm_source=rss&utm_medium=rss&utm_campaign=infostate-of-africa
Cultural
aspects
By 2050, roughly 20% of the world population
is going to be in Africa, up from 9% in 1900.
Source: http://www.strategy-business.com/article/10105?pg=all
Africa is one of the youngest markets in the world,
with more than half its population under 24.
Whereas Europe’s population is expected to decline
by 60 million people by 2050, Africa will add 900
million people.
Sources:
Mahajan, Vijay: Africa Rising, p. 38.
The Population Reference Bureau.
Africa’s population
Source
https://www.mckinseyquarterly.com/Economic_Studies/Productivity_Performance/Checking_Africas_vital_signs_2606
40% of the African population live in cities
Source
https://www.mckinseyquarterly.com/Economic_Studies/Productivity_Performance/Whats_driving_Africas_growth_2601
East Africa culture
Power Uncertainty
Individualism Masculinity
distance avoidance
Source: http://www.geert-hofstede.com/hofstede_east_africa.shtml
West Africa culture
Power Uncertainty
Individualism Masculinity
distance avoidance
Source: http://www.geert-hofstede.com/hofstede_west_africa.shtml
High
power distance
In Scandinavian countries it is no problem that a a
direct report of the CEO becomes his project leader,
whereas in African countries where I have been
working recently, this is impossible.
Thorsten Weber, HLP, Germany
Source: http://themindfulinternationalmanager.com/mim_4_6.pdf
”The biggest dangers facing Africa are
political instability and ancient feuds.”
Sir John Major
Source
http://emagazine.credit-suisse.com/app/article/index.cfm?fuseaction=OpenArticle&aoid=225238&WT.mc_id=In%20Focus%20INT%205.5.2008-225617&lang=EN
Low
individualism
"The family is a crowd", goes an African saying,
illustrating the notion of extended family - including
parents and children, grandparents, uncles and
aunts, in-laws, cousins of varying degrees etc.
Source: http://www.culture-relations.ch/html/pop/up3.htm
High
masculinity
Source: Global Gender Cap Index 2007.